50% OFF
MarketBeat All Access
Get 30 days free. Save 50% your first year.
  •  days
  •  Hours
  •  Minutes
  •  Seconds
×
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
The 3-Stock Retirement Blueprint (Ad)
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
How to profit from the coming boom in gold (Ad)
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
How to profit from the coming boom in gold (Ad)
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce&Gabbana archives for Milan show
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
The 3-Stock Retirement Blueprint (Ad)
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
How to profit from the coming boom in gold (Ad)
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
How to profit from the coming boom in gold (Ad)
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce&Gabbana archives for Milan show
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
The 3-Stock Retirement Blueprint (Ad)
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
How to profit from the coming boom in gold (Ad)
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
How to profit from the coming boom in gold (Ad)
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce&Gabbana archives for Milan show
S&P 500   3,693.23
DOW   29,590.41
QQQ   275.51
Become an Ethical Hacking and Cybercrime Expert
The 3-Stock Retirement Blueprint (Ad)
Will Wall Street's Enthusiasm About Datadog Lead To Big Gains?
MarketBeat: Week in Review 9/19 – 9/23
How to profit from the coming boom in gold (Ad)
China using civilian ships to enhance navy capability, reach
German leader seeks energy deals, alliances on Gulf trip
How to profit from the coming boom in gold (Ad)
Saudi Arabia's triumphant week reclaims the West's embrace
Kim Kardashian culls Dolce&Gabbana archives for Milan show

Golden Cross Stocks

A golden cross occurs when a stock's 50-day moving average crosses above its 200-day moving average. This page tracks stocks that have set golden crosses sometime within the last seven days. Learn more about golden crosses.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
Available with a MarketBeat All Access Subscription
MarketRank™Upgrade to All Access to use the All Ranks Filter
Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyCurrent Price50-Day Moving Average200-Day Moving AverageVolumeAverage VolumeIndicator(s)
AlloVir, Inc. stock logo
ALVR
AlloVir
$7.39
-1.7%
$7.06$5.85186,163409,918
Apollo Medical Holdings, Inc. stock logo
AMEH
Apollo Medical
$41.09
+1.3%
$46.62$42.49214,040244,248Analyst Report
Short Interest ↑
Analyst Revision
News Coverage
AAON, Inc. stock logo
AAON
AAON
$54.07
-0.8%
$58.70$55.17167,006131,092
Agios Pharmaceuticals, Inc. stock logo
AGIO
Agios Pharmaceuticals
$28.99
-2.1%
$27.29$25.14608,993981,759
CRBU
Caribou Biosciences
$9.94
-2.7%
$9.78$8.50839,118914,590News Coverage
Positive News
Gap Down
Concrete Pumping Holdings, Inc. stock logo
BBCP
Concrete Pumping
$6.71
$6.82$6.2865,29244,774
BioAtla, Inc. stock logo
BCAB
BioAtla
$8.01
-5.8%
$7.00$4.80757,240381,928News Coverage
BioLife Solutions, Inc. stock logo
BLFS
BioLife Solutions
$22.23
-0.4%
$22.32$18.45243,571305,636Gap Down
Brooge Energy Limited stock logo
BROG
Brooge Energy
$8.45
$7.99$7.862351,456Positive News
Enanta Pharmaceuticals, Inc. stock logo
ENTA
Enanta Pharmaceuticals
$50.94
-3.2%
$60.59$57.87186,537228,728News Coverage
Freedom Holding Corp. stock logo
FRHC
Freedom
$50.66
-3.8%
$55.07$50.9779,56770,176Positive News
Infinity Pharmaceuticals, Inc. stock logo
INFI
Infinity Pharmaceuticals
$1.20
+9.6%
$1.16$0.93416,733399,963Positive News
Gap Down
Lumos Pharma, Inc. stock logo
LUMO
Lumos Pharma
$9.00
+0.9%
$8.38$8.2910,5367,416News Coverage
Gulf Island Fabrication, Inc. stock logo
GIFI
Gulf Island Fabrication
$3.92
-2.7%
$3.78$3.6624,82118,576
Hawkins, Inc. stock logo
HWKN
Hawkins
$37.68
-4.0%
$39.67$39.2664,79953,921Analyst Downgrade
News Coverage
Haynes International, Inc. stock logo
HAYN
Haynes International
$35.78
-1.6%
$39.40$38.8238,26142,487Positive News
Gap Down
Origin Materials, Inc. stock logo
ORGN
Origin Materials
$5.11
-1.7%
$6.09$6.221.37 million814,282News Coverage
KemPharm, Inc. stock logo
KMPH
KemPharm
$5.83
-2.0%
$5.80$5.09194,893167,504Gap Down
MidWestOne Financial Group, Inc. stock logo
MOFG
MidWestOne Financial Group
$28.59
-2.6%
$31.10$30.7815,90517,653News Coverage
Kaltura, Inc. stock logo
KLTR
Kaltura
$2.26
-1.3%
$2.33$1.9798,567271,415Positive News
Rain Therapeutics Inc. stock logo
RAIN
Rain Therapeutics
$6.60
-0.5%
$6.55$5.0310,07946,328Gap Down
Akero Therapeutics, Inc. stock logo
AKRO
Akero Therapeutics
$25.91
-1.0%
$14.72$12.491.11 million3.42 millionShort Interest ↑
Akumin Inc. stock logo
AKU
Akumin
$1.77
+9.0%
$1.18$0.98200,006273,490Gap Down
Arhaus, Inc. stock logo
ARHS
Arhaus
$7.88
-1.7%
$7.58$6.86244,681459,216
Old National Bancorp stock logo
ONB
Old National Bancorp
$16.81
-1.7%
$17.05$16.182.72 million1.53 million
Silicom Ltd. stock logo
SILC
Silicom
$34.72
-1.2%
$39.69$37.3112,3528,349News Coverage
AURC
Aurora Acquisition
$9.90
+0.2%
$9.86$9.8313,21081,758News Coverage
Utah Medical Products, Inc. stock logo
UTMD
Utah Medical Products
$85.35
-1.7%
$89.38$87.066,2454,163
Park City Group, Inc. stock logo
PCYG
Park City Group
$5.80
+0.5%
$5.60$5.2428,99524,630Upcoming Earnings
Analyst Report
News Coverage
voxeljet AG stock logo
VJET
voxeljet
$3.63
-8.3%
$4.85$4.2012,58412,462
Lancaster Colony Co. stock logo
LANC
Lancaster Colony
$159.33
-3.3%
$151.94$143.51229,208143,788
Invesco DWA Healthcare Momentum ETF stock logo
PTH
Invesco DWA Healthcare Momentum ETF
$118.50
-2.2%
$128.41$124.9015,02812,584
Quest Resource Holding Co. stock logo
QRHC
Quest Resource
$7.20
-6.9%
$6.06$5.47127,930100,133Gap Down
Darling Ingredients Inc. stock logo
DAR
Darling Ingredients
$67.34
-7.1%
$72.32$73.501.70 million1.02 millionNews Coverage
Gap Down
Glacier Bancorp, Inc. stock logo
GBCI
Glacier Bancorp
$50.43
-1.0%
$51.07$49.22387,056359,089News Coverage
Home Bancorp, Inc. stock logo
HBCP
Home Bancorp
$38.75
-0.2%
$39.04$37.7413,96911,067Analyst Upgrade
Blink Charging Co. stock logo
BLNK
Blink Charging
$18.01
-3.3%
$21.40$20.37771,267887,844News Coverage
Gap Down
KLA Co. stock logo
KLAC
KLA
$307.60
-1.7%
$357.20$343.651.84 million1.69 millionInsider Selling
Apple Inc. stock logo
AAPL
Apple
$150.43
-1.5%
$160.32$155.7896.03 million86.47 millionAnalyst Report
Analyst Revision
bluebird bio, Inc. stock logo
BLUE
bluebird bio
$5.62
-5.9%
$5.82$4.746.30 million8.94 millionAnalyst Report
Analyst Revision
Gap Down
EverCommerce Inc. stock logo
EVCM
EverCommerce
$10.63
-0.6%
11.7511.25167,100152,637Positive News
AGM Group Holdings Inc. stock logo
AGMH
AGM Group
$1.59
-7.6%
$2.04$1.941,45212,960Upcoming Earnings
Short Interest ↑
News Coverage
BioCryst Pharmaceuticals, Inc. stock logo
BCRX
BioCryst Pharmaceuticals
$12.36
-2.7%
$13.21$12.152.26 million2.31 million
GLOBALFOUNDRIES Inc. stock logo
GFS
GLOBALFOUNDRIES
$53.25
-2.9%
$56.42$55.281.87 million1.82 million
American States Water stock logo
AWR
American States Water
$83.27
-1.2%
$85.77$83.19167,623207,090News Coverage
Positive News
Core & Main, Inc. stock logo
CNM
Core & Main
$22.14
-0.5%
$23.72$23.301.80 million1.06 millionAnalyst Report
Insider Selling
Crescent Energy stock logo
CRGY
Crescent Energy
$13.57
-3.9%
$15.31$15.861.01 million649,621Gap Down
Carpenter Technology Co. stock logo
CRS
Carpenter Technology
$33.33
-4.6%
$34.38$34.93207,353313,963Gap Down
Heritage Commerce Corp stock logo
HTBK
Heritage Commerce
$11.50
+0.3%
$11.63$11.35208,334118,334Positive News
indie Semiconductor, Inc. stock logo
INDI
indie Semiconductor
$7.31
-4.8%
$7.73$7.171.05 million1.49 millionInsider Selling
News Coverage
WesBanco, Inc. stock logo
WSBC
WesBanco
$34.90
-1.8%
$34.46$33.61173,743214,690
Arista Networks, Inc. stock logo
ANET
Arista Networks
$109.97
-2.3%
$118.86$114.592.38 million1.83 millionAnalyst Upgrade
The Goldman Sachs Group, Inc. stock logo
GS
The Goldman Sachs Group
$301.97
-3.5%
$333.08$320.652.92 million1.77 million
United Community Banks, Inc. stock logo
UCBI
United Community Banks
$32.85
-2.4%
$33.73$32.49689,964553,439Analyst Upgrade
U.S. Well Services, Inc. stock logo
USWS
U.S. Well Services
$5.29
-3.8%
$6.01$5.60156,034102,010Gap Down
Inphi Corp stock logo
IPHI
Inphi
$172.27
$172.27$172.275.67 million1.03 millionHigh Trading Volume
PG&E Co. stock logo
PCG
PG&E
$12.61
-2.7%
$11.96$11.6820.43 million16.25 million
Amphenol Co. stock logo
APH
Amphenol
$68.83
-1.0%
$74.64$71.633.03 million1.76 million
Ares Management Co. stock logo
ARES
Ares Management
$65.22
-2.9%
$72.62$70.632.29 million890,229High Trading Volume
Alteryx, Inc. stock logo
AYX
Alteryx
$58.33
-4.1%
$60.47$59.99914,220635,037Short Interest ↑
CANO
Cano Health
$8.87
+6.4%
$6.18$5.7233.42 million3.87 millionAnalyst Report
News Coverage
Gap Up
High Trading Volume
ChannelAdvisor Co. stock logo
ECOM
ChannelAdvisor
$22.72
-0.3%
$17.30$15.632.13 million1.45 million
Barnwell Industries, Inc. stock logo
BRN
Barnwell Industries
$2.55
-9.3%
$2.82$2.76122,32494,191
Corporación América Airports S.A. stock logo
CAAP
Corporación América Airports
$6.49
-5.9%
$6.03$6.0097,56578,133
Fabrinet stock logo
FN
Fabrinet
$92.21
-2.0%
$99.34$94.10193,052170,756Short Interest ↓
Sequans Communications S.A. stock logo
SQNS
Sequans Communications
$3.76
-1.1%
$3.50$3.0671,057115,106Gap Down
Watsco, Inc. stock logo
WSO
Watsco
$252.93
-1.1%
$276.79$271.02264,922214,383
Northfield Bancorp, Inc. (Staten Island, NY) stock logo
NFBK
Northfield Bancorp, Inc. (Staten Island, NY)
$14.76
-0.2%
$14.72$13.90122,228113,680Short Interest ↑
News Coverage
Travere Therapeutics, Inc. stock logo
TVTX
Travere Therapeutics
$24.77
+0.2%
$26.20$25.47658,831460,520Analyst Report
News Coverage
Wolfspeed, Inc. stock logo
WOLF
Wolfspeed
$110.19
+0.3%
$101.50$81.722.76 million2.29 millionAnalyst Report
Gap Down
Zai Lab Limited stock logo
ZLAB
Zai Lab
$37.00
-0.9%
$44.32$39.08853,788745,959
Enel Chile S.A. stock logo
ENIC
Enel Chile
$1.48
-8.6%
$1.57$1.45550,000546,448News Coverage
Gap Down
Lazard Ltd stock logo
LAZ
Lazard
$33.47
-5.2%
$36.84$34.891.01 million672,231
Forward Air Co. stock logo
FWRD
Forward Air
$89.53
-1.7%
$100.32$96.26257,127161,259Positive News
Principal Financial Group, Inc. stock logo
PFG
Principal Financial Group
$72.41
-4.0%
$74.53$69.481.80 million1.82 millionAnalyst Report
Analyst Revision
News Coverage
NatWest Group plc stock logo
NWG
NatWest Group
$5.36
-9.2%
$6.35$6.121.95 million1.21 millionPositive News
Gap Down
Vertical Aerospace Ltd. stock logo
EVTL
Vertical Aerospace
$8.28
+32.1%
$6.71$6.184.70 million109,709Positive News
Gap Up
High Trading Volume
Concord Acquisition Corp stock logo
CND
Concord Acquisition
$10.05
-0.1%
$10.03$9.98129,974186,913Positive News
Evolution Petroleum Co. stock logo
EPM
Evolution Petroleum
$6.83
-11.3%
$6.86$6.69440,489321,435
Fortive Co. stock logo
FTV
Fortive
$59.87
-1.7%
$63.73$60.331.81 million1.59 million
TransDigm Group Incorporated stock logo
TDG
TransDigm Group
$540.51
-2.6%
$615.48$603.11259,830230,884
Grupo Aeroportuario del Sureste, S. A. B. de C. V. stock logo
ASR
Grupo Aeroportuario del Sureste, S. A. B. de C. V.
$201.41
-4.2%
$207.68$207.6333,86545,287
Trane Technologies plc stock logo
TT
Trane Technologies
$147.58
0.0%
$153.72$145.061.40 million1.35 millionNews Coverage
Worthington Industries, Inc. stock logo
WOR
Worthington Industries
$48.16
-2.5%
$51.13$49.36147,074207,921Upcoming Earnings
Analyst Revision
News Coverage
Gap Down
Lakeland Financial Co. stock logo
LKFN
Lakeland Financial
$76.57
-2.1%
$76.07$73.37110,74197,728News Coverage
RealNetworks, Inc. stock logo
RNWK
RealNetworks
$0.70
$0.68$0.6199,360116,630
The L.S. Starrett Company stock logo
SCX
L.S. Starrett
$8.75
-1.0%
$7.99$7.5019,10929,478
Thermo Fisher Scientific Inc. stock logo
TMO
Thermo Fisher Scientific
$520.79
+0.1%
$567.24$558.191.37 million1.09 millionPositive News
South Plains Financial, Inc. stock logo
SPFI
South Plains Financial
$27.42
-1.8%
$26.47$25.5137,65439,715
Cullen/Frost Bankers, Inc. stock logo
CFR
Cullen/Frost Bankers
$136.20
-1.7%
$133.55$130.59476,273454,547Positive News
Dillard's, Inc. stock logo
DDS
Dillard's
$280.00
-2.4%
$276.46$276.86200,765144,363Gap Down
Holly Energy Partners, L.P. stock logo
HEP
Holly Energy Partners
$16.69
-7.3%
$17.67$17.54279,417145,658News Coverage
Gap Down
KE Holdings Inc. stock logo
BEKE
KE
$16.30
-2.7%
$16.20$14.766.29 million11.09 millionGap Down
Morgan Stanley India Investment Fund, Inc. stock logo
IIF
Morgan Stanley India Investment Fund
$24.06
-2.2%
$24.69$23.95198,98524,072High Trading Volume
Itaú Corpbanca stock logo
ITCB
Itaú Corpbanca
$2.95
-2.0%
$3.20$3.1911,05234,249News Coverage
MBAC
M3-Brigade Acquisition II
$9.81
$9.82$9.8067,61830,918High Trading Volume
NRG Energy, Inc. stock logo
NRG
NRG Energy
$40.63
-1.8%
$40.47$40.092.05 million2.17 millionOptions Volume
Murphy Oil Co. stock logo
MUR
Murphy Oil
$33.34
-8.9%
$35.96$36.981.94 million1.26 millionAnalyst Revision
News Coverage
Gap Down
Velocity Financial, Inc. stock logo
VEL
Velocity Financial
$11.38
-4.2%
$11.68$11.0471,85013,925High Trading Volume
Mr. Cooper Group Inc. stock logo
COOP
Mr. Cooper Group
$40.69
-1.5%
$43.43$42.981.22 million515,049Options Volume
News Coverage
High Trading Volume
Pasithea Therapeutics Corp. stock logo
KTTA
Pasithea Therapeutics
$1.19
+1.7%
$1.20$1.1447,086132,757
RCI Hospitality Holdings Inc stock logo
RICK
RCI Hospitality
$63.01
-2.9%
$64.40$59.8881,26856,035
Aramark stock logo
ARMK
Aramark
$33.58
-3.3%
$35.50$34.672.94 million1.67 million
Nutrien Ltd. stock logo
NTR
Nutrien
$82.94
-5.9%
$88.49$93.042.78 million2.28 millionGap Down
Why the Golden Cross is a Significant Trading Signal

Price movement is still one of the key factors in spotting a trend

A golden cross is a technical indicator that is always a predictor of a bullish trend for stocks and other securities. A golden cross forms when a short term moving average crosses over a longer term moving average. In many cases, a simple 50-day and 200-day moving average are used. This is because a longer time frame is usually predictive of a stronger rally.

In this article, we’ll define the phases of a golden cross, explain what moving averages and other indicators traders use to identify and confirm a golden. The article also addresses other topics such as how a golden cross is different from a death cross. And it will touch on some limitations to using the golden cross as a trading tool.

How to Identify a Golden Cross Signal

There are three distinct phases that investors look for when identifying a golden cross.

  • The first phase is when a security bottoms out. This indicates that selling volume is low.
  • Next, the price begins to trend upwards until the short term (or fast) moving average crosses over the long term (or slow) moving average. This is when the cross occurs.
  • The last step is a continued uptrend that signals a profitable golden cross trade.

What Simple Moving Averages do Traders Use to Identify a Golden Cross?

In general, investors look at 50-day and 200-day moving averages as the fast and slow moving averages. This is because longer moving averages tend to indicate longer, more sustained breakouts.

However, day traders will frequently use 15 minute or 30 minute moving averages for fast intraday trading. The real decision for investors when interpreting buy and sell signals is how quickly they want to enter and exit the trade.

A simple moving average is calculated by adding up the closing prices for each of the time periods represented and divide it by the overall time frame. So a simple five-day moving average is calculating by adding up the closing prices for the previous five trading days and dividing by five.

Day 1

$20

Day 2

$20.25

Day 3

$20.17

Day 4

$20.32

Day 5

$20.23

 

The moving average is (20 + 20.25 + 20.17 + 20.32 + 20.23)/5 = 100.97/5 = 20.19 SMA

At the close of the next trading day, the most recent closing price replaces the oldest price and which resets the moving average. Day traders will look for much shorter time frames such as the 5-period and 15-period moving averages as they are only concerned with profiting from intra-day price movement.

The time period of the chart can also be adjusted. Day traders may want to look at candlestick charts that are adjusted every minute or every hour. Long-term traders may be more interested in charts that show price movement in weeks or months. Like the moving average, the length of time makes a difference in how investors interpret a breakout. The longer the time frame, the stronger a golden cross breakout will tend to be.

What Other Moving Averages do Traders Use to Identify a Golden Cross?

In addition to using a simple moving average, some investors use other moving averages such as an exponential moving average (EMA) or volume-weighted moving average (VWMA) as the reference point for a golden cross.

  • Using an exponential moving average (EMA) – An exponential moving average is similar to a standard moving average with a multiplier being used that assigns more weight to recent closing prices. For some investors, this makes the EMA a more accurate indicator of price movement.
  • Using a volume-weighted moving average (VWMA) – The volume weighted moving average is similar to the exponential moving average except it puts more emphasis on the trading periods with the highest volumes. This is significant because most sustained price moves are supported by high trading volumes and can create a golden cross signal earlier than using an SMA or EMA. The VWMA is one of the best tools for detecting both when a trend is coming and when it is ending. When viewed on a daily chart, a VWMA line may appear to have more waves in it – this reflects periods of higher trading volume.
  • Using a VWMA with an SMA – In this strategy, traders can use a VWMA as their short-term moving average with an SMA as their long-term moving average. The rationale behind using the VWMA for the short-term moving average is because the short-term moving average is considered the fast moving average and is always the trigger for a golden cross. As such, the VWMA is more sensitive to a higher trading volume.

What Other Technical Indicators Help Confirm a Golden Cross?

Because the golden cross is a single event, it requires sustained upward price movement to become a profitable investment. Therefore investors should use momentum indicators such as relative strength index (RSI) to help determine whether the stock they are looking at is overbought or oversold.

The RSI is an oscillator that assigns a value between 0 and 100. A security with a value above 70 is delivering an overbought (or overvalued) signal. Conversely, a security with a value below is delivering an oversold (or undervalued) indicator. Like the golden cross itself, the RSI is a lagging indicator so it is possible for prices to continue to rise even as the RSI registers an overbought condition. Similarly, the RSI may be signaling an oversold condition but the prices continue to move down. With this in mind, traders should use the oscillator in the context of the prevailing trend.

Similar to the relative strength index, another technical indicator that can be used to confirm a golden cross is the moving average convergence divergence (MACD).  The MACD shows the relationship between two exponential moving averages (the 26-day and the 12-day) which is called the MACD line. A separate nine-day EMA of the MACD is called a signal line and is shown on a daily chart as sitting on top of the MACD line. The idea is that when a security crosses above the signal line, it is a buy signal. When it crosses below the signal line it is a sell signal.

Why is a Golden Cross Associated with a Candlestick Chart?

Candlestick charts are considered by some technical analysts to be a more reliable indicator of price movement. A candlestick chart clusters data for multiple time periods into single “candles”. The significance of a particular candle comes from its size, color and shading. All of these give traders more detailed information about overall price movement, thus making a golden cross more significant.

How is a Golden Cross Different From a Death Cross?

The golden cross and death cross are often times linked together. In fact, the death cross is sometimes referred to as a variation on the golden cross. Both the golden cross and death cross confirm the reversal of a trend marked by a short-term moving average crossing over a long-term moving average.

The difference between the two indicators is the direction. A golden cross is always a bullish indicator because it is showing a short-term moving average that is trending upwards. A death cross by contrast occurs when a short-term moving average crosses below a long-term moving average. This is a bearish signal. Experienced investors may use a death cross as a trading signal to take a short position on a stock. It is possible for frequently traded stocks to display a number of golden cross and death cross indicators over a period of time.

What are the Limitations of the Golden Cross?

Like most technical indicators, the golden cross is a lagging indicator. This means it is only in evidence after the price movement has already happened. As we pointed out above, the third stage of a profitable golden cross pattern is sustained price movement to the upside. In many cases, a golden cross may be short-lived. If a trader takes a long position, they could be left with a losing trade. Therefore, it’s important to use different signals and indicators such as stochastic oscillators to make a more educated guess as to a trade’s direction. And, like all trades, investors need to let their own risk parameters guide their trading.

Some Closing Thoughts on the Golden Cross

The golden cross is one of the strongest indicators of strong market sentiment in favor of a security. Most commonly defined as occurring when a short-term simple moving average (SMA) crosses above a longer-term SMA, other moving averages or a combination of moving averages can be used.

A golden cross is always a bullish signal. Conversely, a death cross is always a bearish signal. The difference between the two crosses is the direction that the security is moving. Like many technical indicators, the golden cross is a lagging indicator which means that it is only reflecting an event that has already occurred.  For investors looking to predict the strength of a golden cross, they should look at other momentum indicators such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD) lines to get a better sense of overbought or oversold sentiment among investors.


MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.